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Business News/ Money / Personal Finance/  How UPI Autopay will help achieving a billion transactions a day in next 5 years

How UPI Autopay will help achieving a billion transactions a day in next 5 years

UPI Autopay: Customers can now enable recurring e-mandate using any UPI application for recurring payments

NPCI launched UPI Autopay in July 2020. (Mint)Premium
NPCI launched UPI Autopay in July 2020. (Mint)

With digital payments penetrating in the country, the Unified Payments Interface (UPI) transactions are setting record highs every month. UPI transactions are popular as they provide broad-base access to the banking system using facilities already present with customers – mobile phones; there is no need for a separate card or visit to a bank branch. So, is quite reasonable to expect this platform will process 1 billion transactions a day in next few years. Industry experts explain that how will UPI Auto Pay help in achieving a billion daily transactions in the next five years.

What is UPI AutoPay?

With this new facility introduced under UPI 2.0, customers can now enable recurring e-mandate using any UPI application for recurring payments such as mobile bills, electricity bills, EMI payments, entertainment/OTT subscriptions, insurance, mutual funds among others.  NPCI launched UPI Autopay in July 2020.

The sheer magnitude of transactions will receive a big boost with the UPI solution now helping cater to a significant demand within the merchants. 

UPI AutoPay will enable seamless recurring payments like Digital Subscriptions, Insurance Premiums, Investments, Donations, EMIs, etc for millions of users in India. There are over 53 million OTT video subscriptions already and its just the tip of the iceberg," said Rohit Taneja, Founder & CEO at Decentro.

2 major changes in collecting recurring payments via UPI

On top of this, NPCI recently announced two major changes in collecting recurring payments via UPI that removed all the limitations faced by merchants previously. Now, the mandate cannot be canceled/revoked by the borrower (for lending), and all the auto-debits can happen up to 15K now without a PIN that widens the use cases and allows more customers to opt for this feature. 

"Our partners & customers term this as a huge win for the UPI Autopay solution to penetrate the market, and we are looking forward to empower 1000+ companies in the coming years." said Rohit Taneja.

Justin M Bharucha, Managing Partner, Bharucha & Partners said that after NPCI expands UPI overseas as a homegrown substitute for SWIFT and the RBI permits the use of UPI through feature phones and not just smart phones, the target of 1 billion UPI transactions a day should be achievable. 

He further added that the size of the user base will compel global players to integrate with the NPCI UPI system and should help ringfence India from global payment system dependency – a very clear step to Atma Nirbharta while helping expand India’s global footprint.

UPI AutoPay is a payment service that helps people pay their recurring bills automatically on a predetermined date. The service allows users to enable e-mandate for making payments such as their utility bills, EMIs, OTT subscriptions, mutual fund SIP payments, and insurance premiums. Before July 2020, such facility was only available through net banking or credit cards portal.  transactions.

“And now customers are more than happier. They can easily create mandate for their favorite OTT subscription in few steps without any documentation and be assured to never miss their favorite show. They can also create mandate for their post paid mobile connection and be assured that their call never goes barred. And most importantly they can create mandate for their household helpers, who must also be users of UPI, and be assured that their helpers are rewarded on time. This feature is not possible in auto mandate created through net banking or credit card portals. No wonder more and more people are adopting UPI Autopay and their numbers are exponentially increasing," said Gaurav Gunjan, Partner at Gupta Sachdeva & Co., Chartered Accountants.

Looking at the above scenario, there's not even an iota of doubt that UPI Autopay will help in achieving a billion daily transactions in the next five year, he added.

UPI services to remain free

The government won't levy any charges on UPI services. the finance ministry said on Sunday. In a tweet, the finance ministry said that UPI would remain free.

"UPI is a digital public good with immense convenience for the public and productivity gains for the economy. There is no consideration in Govt to levy any charges for UPI services. The concerns of the service providers for cost recovery have to be met through other means," the tweet read.

How to set up e-mandate in the UPI app to maximise the benefits of using AutoPay option

-Log in to BHIM UPI App and click on ‘Auto Debit’ option

 -Click on ‘Mandate’.

-Next step is to manage mandate. This section allows customers to view their past mandates for their reference and records. 

-UPI users can create e-mandate through UPI ID, QR scan, or Intent.

-Users should next select payment frequency or period.

-The mandates can be set for one-time, daily, weekly, fortnightly, monthly, bi-monthly, quarterly, half-yearly, and yearly.

-Next users should add name of the merchant and select auto debit date and then finally click on ‘Proceed’.

-Customers have to authenticate their account through UPI PIN one-time and subsequent monthly payments would be debited automatically.

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Sangeeta Ojha
A business media enthusiast. Writes on personal finance, business and banking.
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Updated: 25 Aug 2022, 08:14 AM IST
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